QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
Title of Each Class |
Trading Symbol(s) |
Name of Exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated Filer | ☐ | |||
☒ |
Smaller Reporting Company | |||||
Emerging Growth Company |
Class |
Outstanding at August 6, 2021 | |
Common stock, $.10 par value |
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Class B stock, $.10 par value |
Index |
Page |
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Part I. |
Financial Information |
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Item 1. |
Financial Statements |
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4 |
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5 |
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6 |
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7 |
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8 |
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Item 2. |
16 |
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Item 3. |
22 |
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Item 4. |
22 |
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Part II. |
Other Information |
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Item 1. |
23 |
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Item 1A. |
23 |
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Item 6. |
23 |
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24 |
June 30, 2021 |
September 30, 2020 |
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ASSETS |
(Unaudited) |
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Current Assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Marketable securities at fair value (cost $ |
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Accounts receivable, less allowance for doubtful accounts of $ |
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Costs and estimated earnings in excess of billings |
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Inventories, net |
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Prepaid expenses and other current assets |
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Total Current Assets |
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Property and equipment, net |
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Other long-term assets |
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Total Assets |
$ | $ | ||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
$ | $ | ||||||
Customer deposits |
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Billings in excess of costs and estimated earnings |
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Accrued expenses and other current liabilities |
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Current operating lease liabilities |
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Total Current Liabilities |
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Deferred and other income taxes |
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Non-current operating lease liabilities |
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Total Liabilities |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock, par value $ |
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Common stock, par value $ shares issued and outstanding at June 30, 2021 and September 30, 2020, respectively |
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Class B Stock, par value $ |
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Capital in excess of par value |
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Retained earnings |
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Total Shareholders’ Equity |
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Total Liabilities and Shareholders’ Equity |
$ | $ | ||||||
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For the Quarters June 30, |
For the Nine Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Net revenue |
$ | $ | $ | $ | ||||||||||||
Cost of goods sold |
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Gross profit |
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Operating expenses: |
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Product engineering and development |
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Selling, general and administrative |
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Operating income |
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Other income (expense), net: |
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Interest and dividend income, net of fees |
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Net realized and unrealized gains (losses) on marketable securities |
( |
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Other |
( |
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Income before income tax expense |
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Income tax expense |
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Net income |
$ | $ | $ | $ | ||||||||||||
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Basic Income per Common Share: |
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Net income per share |
$ | $ | $ | $ | ||||||||||||
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Diluted Income per Common Share: |
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Net income per share |
$ | $ | $ | $ | ||||||||||||
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For the Nine Months Ended June 30, 2021 |
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Common Stock |
Class B Stock |
Capital in Excess of |
Retained |
Total Shareholders’ |
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Shares |
Amount |
Shares |
Amount |
Par Value |
Earnings |
Equity |
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September 30, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— |
— | — |
— | — | |||||||||||||||||||||||
December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— |
— | — |
— | — | |||||||||||||||||||||||
Stock options exercised |
— | — | — | |||||||||||||||||||||||||
March 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— |
— | — |
— | — | |||||||||||||||||||||||
June 30, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
For the Nine Months Ended June 30, 2020 |
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Common Stock |
Class B Stock |
Capital in Excess of |
Retained |
Total Shareholders’ |
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Shares |
Amount |
Shares |
Amount |
Par Value |
Earnings |
Equity |
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September 30, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
December 31, 2019 |
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Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
March 31, 2020 |
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Net income |
— | — | — | — | — | |||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | — | |||||||||||||||||||||||
Stock options exercised |
— | |||||||||||||||||||||||||||
June 30, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
For the Nine Months Ended June 30, |
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2021 |
2020 |
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Cash flows from operations: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to cash flows provided by operating activities: |
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Purchases of marketable securities |
( |
) | ( |
) | ||||
Proceeds from sale and maturity of marketable securities |
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Change in fair value of marketable securities |
( |
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Deferred income taxes |
( |
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Depreciation and amortization |
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Provision for doubtful accounts |
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Stock-based compensation |
— |
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Changes in assets and liabilities: |
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Accounts receivable |
( |
) | ( |
) | ||||
Costs and estimated earnings in excess of billings |
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Inventories (excluding the effect of the Blaw-Knox acquisition) |
( |
) | ||||||
Prepaid expenses and other current assets |
( |
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) | ||||
Accounts payable |
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Customer deposits |
( |
) | ||||||
Accrued expenses and other current liabilities |
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Total adjustments |
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Cash flows provided by operating activities |
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Cash flows used in investing activities: |
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Acquisition of Blaw-Knox assets |
( |
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Capital expenditures |
( |
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) | ||||
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Cash flows used in investing activities |
( |
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Cash flows from financing activities: |
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Proceeds from stock option exercises |
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Cash flows provided by financing activities |
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Net increase (decrease) in cash |
( |
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Cash at: |
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Beginning of period |
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End of period |
$ | $ | ||||||
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Non-cash investing activities: |
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Operating lease right-of-use |
$ | $ | — | |||||
Operating lease liabilities |
$ | $ | — |
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities |
$ | $ | $ | $ | ||||||||||||
Mutual Funds |
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Exchange-Traded Funds |
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Corporate Bonds |
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Government Securities |
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Cash and Money Funds |
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Total |
$ | $ | $ | $ | ||||||||||||
Fair Value Measurements | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equities |
$ | $ | — | $ | — | $ | ||||||||||
Mutual Funds |
— | — | ||||||||||||||
Exchange-Traded Funds |
— | — | ||||||||||||||
Corporate Bonds |
— | — | ||||||||||||||
Government Securities |
— | — | ||||||||||||||
Cash and Money Funds |
— | — | ||||||||||||||
Total |
$ | $ | $ | — | $ | |||||||||||
June 30, 2021 | September 30, 2020 | |||||||
Raw materials |
$ | $ | |
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Work in process |
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Finished goods |
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Used equipment |
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$ | $ | |||||||
June 30, |
September 30, 2020 | |||||||
Costs incurred on uncompleted contracts |
$ | $ | |
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Estimated earnings |
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Billings to date |
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Costs and estimated earnings in excess of billings |
$ | $ | ||||||
Bill ings in excess of costs and estimated earnings |
$ |
$ |
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Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net Income |
$ | $ | $ | $ | ||||||||||||
Common Shares: |
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Weighted average common shares outstanding |
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Effect of dilutive stock options |
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Diluted shares outstanding |
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Basic: |
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Net earnings per share |
$ | $ | $ | $ | ||||||||||||
Diluted: |
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Net earnings per share |
$ | $ | $ | $ | ||||||||||||
Quarter Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Equipment sales recognized over time |
$ | $ | $ | $ | ||||||||||||
Equipment sales recognized at a point in time |
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Parts and component sales |
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Freight revenue |
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Other |
( |
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) | ||||||||||||
Net revenue |
$ | $ | $ | $ | ||||||||||||
June 30, 2021 | September 30, 2020 | |||||||
Operating lease ROU asset included in other long-term assets |
$ | $ | ||||||
Current operating lease liability |
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Non-current operating lease liability |
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Weighted average remaining lease term (in years) |
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Weighted average discount rate used in calculating ROU asset |
% | % |
Fiscal Year |
Annual Lease Payments | |||
2021 (remaining 3 months) |
$ | |||
2022 |
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2023 |
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Total |
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Less interest |
( |
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Present value of lease liabilities |
$ | |||
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Exhibit 31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350 | |
Exhibit 101.1 | Interactive Data File | |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, formatted in Inline XBRL (included in Exhibit 101) |
GENCOR INDUSTRIES, INC. |
/s/ John E. Elliott |
John E. Elliott |
Chief Executive Officer |
August 11, 2021 |
/s/ Eric E. Mellen |
Eric E. Mellen |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |
August 11, 2021 |